GST valuation clarification on Partial material supply by the customer

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..... GST valuation clarification on Partial material supply by the customer
Query (Issue) Started By: - suresh sathyamurthy Dated:- 21-2-2022 Last Reply Date:- 27-2-2022 Goods and Services Tax - GST
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GST
As per the Purchase Order between A & B a) A has to supply goods to B, b) B will have supplying some critical parts to A at Free of cost, which will be part in the final produ .....

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..... ct ( the parts supplied by B is out of scope of the above Purchase Order, A along with the material purchased by him, while assembling will incorporate the parts supplied by B in the final product as per the design given by B, and will be charging as per PO excluding the cost of material supplied by B) c) Now B has request A to import the material in A's name from B's parent company situated .....

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..... in foreign country and B has agreed to reimburse custom duty, GST & clearing charges to A, for which A has to raise separate debit note with GST for claiming the reimbursement. A will not be paying for the importer, ( the importer will be remaining unpaid) Request to know from expert i) Will there be any valuation issue for transaction mentioned in point b ii) That could be implication for t .....

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..... ransaction as mentioned in point c above Thanks in advance Reply By Amit Agrawal: The Reply: It is my understanding that goods supplied by A are 'manufactured goods by A' where critical components - given on FOC basis by B - are used in the manufacturing by A. In such a supply of goods by A, critical components given on FOC basis amounts to 'additional non-monetary consideration&# .....

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..... 39; flowing from B to A for supply of the manufactured goods. And valuation for supply by A - for the purpose of charging & paying GST - needs to be arrived as per applicable valuation rule. Same will be applicable for both scenario b and c listed in the query. These are personal views of mine and same should not be construed as professional advice / suggestion.
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